Who's responsible for this mess?

Probably the worst real estate decline in memory but who's responsible for putting us there? What do we think?

 

Does it matter at the end of the day?

 

Learning opportunity!

 

Its the price you pay when government sits on its backside and does nothing .

 

You are missing one option:- FRCPs

 

We are responsible. Bubbles are human nature.

We did it to ourselves

 

How about, "None of the above?"

In fact I'm not entirely sure what crisis you're referring to? What's happening right now is a normal part of the market cycle.

 

It's NOT part a normal market cycle, a normal market cycle runs on the forces of demand/supply and doesn't need intervention from regulators.

A normal market cycle would have triggered caution in lending as a result of some problem like arrears or defaults.

 

you missing interest rates there

 

Idiotic banking policy of banks, only willing to lend to addresses with a post code that is overpriced and negative cashflow, while refusing to lend for properties that make lots of money. WTF did they expect to happen.

 

why it is a "crisis" ? @standtall ?

 

Why is it a mess?
what goes up comes down,
Do you really expect ever increasing credit will keep popping up prices without income backing it up?

 

aha...the selective free market cycle argument when it suits,
is NG not an intervention?

 

I'm still not sure what crisis you're referring to?

Do you mean the 'affordability crisis'? I'd say that was caused by a range of certain government policies along with a lack of other needed government management over the course of almost 3 decades. The solution to this will also be decades in the making, not the simplistic ideas that are being thrown about.

Or perhaps it's the 'lending crisis'? That was triggered by regulators and then followed by lenders reacting too conservatively. There's a good argument for and against the necessity of this, so I don't think I'd call it a crisis. More like a re-normalisation of the standards.

The crisis of house prices dropping in Melbourne & Sydney? A normal and quite predictable part of the market cycle. It might have been triggered by the previous two categories, but that is a trigger. We've had booms and busts before as a result of government policy. The current correction was always going to happen sooner or later.

 

Pretty much.
How about "Greed" as an option?

 

One person's 'crisis' is another person's opportunity of the year .

 

I'd go a step further and say 'The Media'.

The fact you're using language like 'crisis' is case in point.

 

It's a conspiracy between the One Nation Party and the NRA.

 

Howard when he made changes to capital gain tax.

 

Hey @standtall

Legitimate question, I thought you were bullish on property, even recently predicting a return to peak in Syd by August? Maybe I have you confused with someone else, or did your outlook shift?

Cheers